Tech investor Bill Gurley says IPOs have put Silicon Valley on ‘bad end of a bad joke for about four decades’

Bill Gurley of venture capital firm Benchmark says that when it comes to IPOs, investment banks have been getting the better of tech companies and start-up investors for a long time. In a discussion on CNBC’s “Halftime Report” on Tuesday, Gurley, whose firm is a big investor in Uber and WeWork, said the direct listing approach taken by Spotify and Slack is a model that more companies should consider. In a direct listing, companies don’t use banks to distribute and price new shares, but rather op


Bill Gurley of venture capital firm Benchmark says that when it comes to IPOs, investment banks have been getting the better of tech companies and start-up investors for a long time. In a discussion on CNBC’s “Halftime Report” on Tuesday, Gurley, whose firm is a big investor in Uber and WeWork, said the direct listing approach taken by Spotify and Slack is a model that more companies should consider. In a direct listing, companies don’t use banks to distribute and price new shares, but rather op
Tech investor Bill Gurley says IPOs have put Silicon Valley on ‘bad end of a bad joke for about four decades’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: annie palmer
Keywords: news, cnbc, companies, companies, investors, silicon, investor, end, ipos, bad, banks, listing, direct, tech, valley, decades, gurley, ipo, joke


Tech investor Bill Gurley says IPOs have put Silicon Valley on 'bad end of a bad joke for about four decades'

Bill Gurley of venture capital firm Benchmark says that when it comes to IPOs, investment banks have been getting the better of tech companies and start-up investors for a long time.

In a discussion on CNBC’s “Halftime Report” on Tuesday, Gurley, whose firm is a big investor in Uber and WeWork, said the direct listing approach taken by Spotify and Slack is a model that more companies should consider. In a direct listing, companies don’t use banks to distribute and price new shares, but rather open up the public market to stock owned by existing stakeholders.

“I think Silicon Valley has been on the bad end of a bad joke for about four decades now, in terms of the way the traditional IPO process works,” Gurley said. “The more I study and contrast it with direct listings, the more I realize that.”

Gurley pointed to research from Jay Ritter, an IPO expert and business professor at the University of Florida, which shows that top investment banks like Goldman Sachs, Morgan Stanley and Jefferies continue to underprice IPOs, meaning companies are giving away upside to new investors. Based on Ritter’s data, he estimates that Silicon Valley companies have handed over more than $170 billion as a result of underpricing.


Company: cnbc, Activity: cnbc, Date: 2019-09-12  Authors: annie palmer
Keywords: news, cnbc, companies, companies, investors, silicon, investor, end, ipos, bad, banks, listing, direct, tech, valley, decades, gurley, ipo, joke


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US futures point to slightly higher open

U.S. stocks were set to open slightly higher Wednesday morning. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher. U.S. stocks ended Tuesday little changed amid a fall in tech shares. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.


U.S. stocks were set to open slightly higher Wednesday morning. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher. U.S. stocks ended Tuesday little changed amid a fall in tech shares. Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.
US futures point to slightly higher open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: silvia amaro
Keywords: news, cnbc, companies, stocks, open, points, higher, trade, china, american, tech, amid, wednesdays, slightly, futures, point


US futures point to slightly higher open

U.S. stocks were set to open slightly higher Wednesday morning.

At around 1:40 a.m. ET, Dow futures rose 46 points, indicating a positive open of more than 24 points. Futures on the S&P and Nasdaq were also marginally higher.

U.S. stocks ended Tuesday little changed amid a fall in tech shares. Ahead of Wednesday’s session, the focus is on trade relations between China and the U.S. Beijing released a tariff exemptions list for products from the U.S. on Wednesday morning.

Meanwhile, according to the American Chamber of Commerce in Shanghai, some American companies are speeding up their move away from China amid the imposition of U.S. tariffs.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: silvia amaro
Keywords: news, cnbc, companies, stocks, open, points, higher, trade, china, american, tech, amid, wednesdays, slightly, futures, point


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China will win the trade war and wean off American technology in 7 years, strategist says

China will win the trade war with the U.S., and eventually wean itself off its reliance on American technology, a strategist told CNBC on Monday. “China will never trust the United States again, and it will achieve its technology independence within seven years,” David Roche, Independent Strategy’s president and global strategist, told CNBC’s “Squawk Box.” In May, Chinese tech giant Huawei was placed on a U.S. blacklist, restricting the firm from purchasing American-made chips and software unles


China will win the trade war with the U.S., and eventually wean itself off its reliance on American technology, a strategist told CNBC on Monday. “China will never trust the United States again, and it will achieve its technology independence within seven years,” David Roche, Independent Strategy’s president and global strategist, told CNBC’s “Squawk Box.” In May, Chinese tech giant Huawei was placed on a U.S. blacklist, restricting the firm from purchasing American-made chips and software unles
China will win the trade war and wean off American technology in 7 years, strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: stella soon
Keywords: news, cnbc, companies, tech, war, china, huawei, software, chips, win, strategist, american, wean, technology, trade, told


China will win the trade war and wean off American technology in 7 years, strategist says

China will win the trade war with the U.S., and eventually wean itself off its reliance on American technology, a strategist told CNBC on Monday.

“China will never trust the United States again, and it will achieve its technology independence within seven years,” David Roche, Independent Strategy’s president and global strategist, told CNBC’s “Squawk Box.”

China has traditionally been reliant on U.S. suppliers for key tech components such as chips and software, as well as modems and jet engines, but recent developments in the two countries’ protracted trade war have strained those ties and affected businesses from both sides.

In May, Chinese tech giant Huawei was placed on a U.S. blacklist, restricting the firm from purchasing American-made chips and software unless they got permission to do so. Some American mobile networks also use Huawei gear, while other U.S. companies have said their revenue will be affected by the blacklist.

Alphabet’s Google also halted all business activity with Huawei, a move that means future Huawei phones will no longer come installed with Google’s Android operating system.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: stella soon
Keywords: news, cnbc, companies, tech, war, china, huawei, software, chips, win, strategist, american, wean, technology, trade, told


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McDonald’s acquires A.I. company to help automate the drive-thru, its third tech deal this year

A customer views a digital menu at the drive-thru outside a McDonald’s restaurant in Peru, Illinois. McDonald’s said Tuesday it has agreed to acquire a company that is trying to automate the drive-thru. Apprente, a Silicon Valley company founded in 2017, uses artificial intelligence to understand drive-thru orders, which could cut down on service times. Apprente’s employees will be the founding members of a group called McD Tech Labs, which will be housed within McDonald’s global technology team


A customer views a digital menu at the drive-thru outside a McDonald’s restaurant in Peru, Illinois. McDonald’s said Tuesday it has agreed to acquire a company that is trying to automate the drive-thru. Apprente, a Silicon Valley company founded in 2017, uses artificial intelligence to understand drive-thru orders, which could cut down on service times. Apprente’s employees will be the founding members of a group called McD Tech Labs, which will be housed within McDonald’s global technology team
McDonald’s acquires A.I. company to help automate the drive-thru, its third tech deal this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: amelia lucas
Keywords: news, cnbc, companies, drivethru, tech, wants, company, yearapprente, views, technology, silicon, automate, valley, help, mcdonalds, deal, acquires


McDonald's acquires A.I. company to help automate the drive-thru, its third tech deal this year

A customer views a digital menu at the drive-thru outside a McDonald’s restaurant in Peru, Illinois.

McDonald’s said Tuesday it has agreed to acquire a company that is trying to automate the drive-thru. It’s the fast-food giant’s third tech-focused deal this year.

Apprente, a Silicon Valley company founded in 2017, uses artificial intelligence to understand drive-thru orders, which could cut down on service times. McDonald’s said the technology also could be used someday in its self-order kiosks and mobile app.

The Chicago-based company said it evaluated Apprente’s technology in McDonald’s test restaurants.

Apprente’s employees will be the founding members of a group called McD Tech Labs, which will be housed within McDonald’s global technology team. The burger chain wants to grow its presence in Silicon Valley by hiring more tech experts, including engineers and data scientists.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: amelia lucas
Keywords: news, cnbc, companies, drivethru, tech, wants, company, yearapprente, views, technology, silicon, automate, valley, help, mcdonalds, deal, acquires


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Amazon is hiring over 30,000 workers in these 6 US cities

Amazon wants to add 30,000 people to its workforce, and it’s putting on major hiring events in six cities to recruit. Amazon Career Day will be held Tuesday, Sept. 17, in Arlington, Virginia (the company’s newly-minted second U.S. headquarters); Boston; Chicago; Dallas; Nashville and Seattle. The e-commerce giant is hiring for permanent jobs that range in experience from entry-level roles at fulfillment centers to software developers to computer vision scientists. Outside of tech, the company ha


Amazon wants to add 30,000 people to its workforce, and it’s putting on major hiring events in six cities to recruit. Amazon Career Day will be held Tuesday, Sept. 17, in Arlington, Virginia (the company’s newly-minted second U.S. headquarters); Boston; Chicago; Dallas; Nashville and Seattle. The e-commerce giant is hiring for permanent jobs that range in experience from entry-level roles at fulfillment centers to software developers to computer vision scientists. Outside of tech, the company ha
Amazon is hiring over 30,000 workers in these 6 US cities Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: jennifer liu
Keywords: news, cnbc, companies, companys, tech, company, job, fulfillment, cities, 30000, data, workers, day, jobs, hiring, amazon


Amazon is hiring over 30,000 workers in these 6 US cities

Amazon wants to add 30,000 people to its workforce, and it’s putting on major hiring events in six cities to recruit.

Amazon Career Day will be held Tuesday, Sept. 17, in Arlington, Virginia (the company’s newly-minted second U.S. headquarters); Boston; Chicago; Dallas; Nashville and Seattle. The e-commerce giant is hiring for permanent jobs that range in experience from entry-level roles at fulfillment centers to software developers to computer vision scientists.

Both part- and full-time jobs are up for grabs and will work out of the company’s headquarters, tech hubs, data centers and fulfillment centers. Pay starts at the company’s minimum wage of $15 per hour.

Attendees are encouraged to apply for a job directly with Amazon or participate in information sessions about starting a business with the company as an online seller, delivery service partner, self-published author and more. Job-seekers can also get interviewing and resume advice.

New company hires will also be a part of its Upskilling 2025 initiative, a $700 million investment in skills training programs for up to 100,000 employees. Some of the company’s fastest-growing tech jobs in the past five years include data scientist, solutions architect, network development engineer and web development engineer. Outside of tech, the company has significantly scaled its contingent of data mapping specialists, fulfillment center workers, program managers and marketers.

Full-time employees can expect health care benefits from their first day, 401(k) match and up to 20 weeks of paid parental leave.

“Amazon has created more than 300,000 new jobs in the U.S. over the last decade – and we’re proud to continue investing and creating opportunities for people across the country,” said founder and CEO Jeff Bezos said in a statement. “These are jobs with highly competitive compensation and full-benefits from day one, as well as training opportunities to gain new skills in high-demand fields such as robotics and machine learning.”

The company is also gearing up for the holiday season by hiring tens of thousands of part-time, seasonal roles across the country.

Those interested snagging a job with Amazon can register for the Career Day and search for openings online.

In the past, Amazon recruiters have told CNBC Make It that those looking to land a job at the company should study the e-commerce behemoth’s 14 leadership principles and be able to clearly explain why they’d be a great fit for the job.

“We’re really looking for reasons to say ‘yes,’ not to say ‘no,'” said Sean Kelley, Amazon Worldwide Operations Talent Acquisition Director, in 2018.

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Don’t miss: Shaq: As soon as I started investing like Jeff Bezos, ‘I probably quadrupled what I’m worth’


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: jennifer liu
Keywords: news, cnbc, companies, companys, tech, company, job, fulfillment, cities, 30000, data, workers, day, jobs, hiring, amazon


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Dow turns positive, erases 118-point loss on report China could agree to buy more US agricultural products

Stocks fell on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating. The Dow Jones Industrial Average traded 110 points lower, or 0.4%. The Nasdaq Composite lost 0.9% while the S&P 500 slid 0.7%. The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. Ford Motor was the biggest decliner in the S&P 500 on Tuesday, dropping 3.5%.


Stocks fell on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating. The Dow Jones Industrial Average traded 110 points lower, or 0.4%. The Nasdaq Composite lost 0.9% while the S&P 500 slid 0.7%. The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. Ford Motor was the biggest decliner in the S&P 500 on Tuesday, dropping 3.5%.
Dow turns positive, erases 118-point loss on report China could agree to buy more US agricultural products Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: fred imbert
Keywords: news, cnbc, companies, lower, credit, report, products, erases, dow, buy, fell, tech, loss, china, decline, agricultural, slid, turns, 500, sector, positive


Dow turns positive, erases 118-point loss on report China could agree to buy more US agricultural products

Stocks fell on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating.

The Dow Jones Industrial Average traded 110 points lower, or 0.4%. The Nasdaq Composite lost 0.9% while the S&P 500 slid 0.7%.

Shares of Facebook, Amazon, Netflix and Alphabet all fell at least 0.4%. The Technology Select Sector SPDR Fund (XLK) slid 1.4%.

The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. The sector’s decline pushed the broad index to close lower for the first time in four sessions.

Ford Motor was the biggest decliner in the S&P 500 on Tuesday, dropping 3.5%. The stock fell after Moody’s downgraded the auto maker’s credit rating to junk status, citing below-expectations profit margins and cash flow.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: fred imbert
Keywords: news, cnbc, companies, lower, credit, report, products, erases, dow, buy, fell, tech, loss, china, decline, agricultural, slid, turns, 500, sector, positive


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State probes into Big Tech are a ‘backstop’ in case the feds back down, say antitrust experts

Nearly all the country’s attorneys general are now putting their weight behind antitrust investigations of Big Tech. “The state attorneys general, they are an independent bunch,” D.C. Attorney General Karl Racine, a Democrat, said Monday. Lately, federal regulatory action against Facebook and Google has had little impact on their core businesses or stock prices. So for those waiting to see if the U.S. government will deal a more significant blow to Big Tech, the state AG investigations may be a


Nearly all the country’s attorneys general are now putting their weight behind antitrust investigations of Big Tech. “The state attorneys general, they are an independent bunch,” D.C. Attorney General Karl Racine, a Democrat, said Monday. Lately, federal regulatory action against Facebook and Google has had little impact on their core businesses or stock prices. So for those waiting to see if the U.S. government will deal a more significant blow to Big Tech, the state AG investigations may be a
State probes into Big Tech are a ‘backstop’ in case the feds back down, say antitrust experts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: lauren feiner
Keywords: news, cnbc, companies, state, experts, antitrust, facebook, tech, federal, say, backstop, investigations, probes, case, google, companies, feds, states, big, general


State probes into Big Tech are a 'backstop' in case the feds back down, say antitrust experts

District of Columbia Attorney General Karl Racine (L) and Texas Attorney General Ken Paxton speak during the launch of an antitrust investigation into large tech companies, outside of the US Supreme Court in Washington, DC on September 9, 2019.

The group investigating Google, which includes all the states except California and Alabama, stressed their independence from federal regulators, who are already asking their own questions of the company, Google previously disclosed .

Nearly all the country’s attorneys general are now putting their weight behind antitrust investigations of Big Tech. And while the state-led probes will turn up the heat on companies such as Google and Facebook , they will also likely add pressure to federal regulators who have launched their own investigations into the industry, according to antitrust experts.

“The state attorneys general, they are an independent bunch,” D.C. Attorney General Karl Racine, a Democrat, said Monday. “And they can be quite tenacious. So I’m very confident that this bipartisan group is going to be led by the facts and not be swayed by any conclusion that may fall short, if you will, if it’s inconsistent with our facts, on the federal side. So we’re going to do what we think is right based on our investigation.”

Racine’s comments, and the mobilization of such a large group of attorneys general, could indicate a level of dissatisfaction among top state legal officials when it comes to federal action against Big Tech.

Lately, federal regulatory action against Facebook and Google has had little impact on their core businesses or stock prices. The Federal Trade Commission recently slapped Google with a $170 million fine for allegedly violating a law protecting children online. The amount represented less than half of a single day’s revenue for its parent company, based on its second quarter 2019 earnings. And the FTC’s record $5 billion settlement with Facebook over its use of user data also resolved all claims against Facebook and its executives involving its previous agreement with the agency.

So for those waiting to see if the U.S. government will deal a more significant blow to Big Tech, the state AG investigations may be a welcome development. After all, states have played a noteworthy role in past cases, gaining significant concessions from tobacco companies and pressing Microsoft in a landmark antitrust case. In that case, attorneys general from 20 states and the District of Columbia joined the Justice Department in alleging Microsoft suppressed competition in the software market. In the end, however, the Justice Department decided to settle with the company, and several states vocally dissented against what they saw as a weak agreement.

Half a dozen antitrust experts interviewed for this article said state investigations can certainly add heat to the federal probes, but ultimately, their resources pale in comparison to those of the FTC and DOJ.

“The big picture here is that states can serve as a backstop if the federal government decides not to go after these companies,” Rutgers Law professor Michael Carrier said.

“You’re putting 30 generally small offices together and then they have to coordinate,” said Harry First, a professor at the New York University School of Law. “It’s good, but it’s not quite the same as the extent of the staffs on the federal level.”

Considering both Google and Facebook are large global companies, “it’s a heavy lift,” First said.


Company: cnbc, Activity: cnbc, Date: 2019-09-09  Authors: lauren feiner
Keywords: news, cnbc, companies, state, experts, antitrust, facebook, tech, federal, say, backstop, investigations, probes, case, google, companies, feds, states, big, general


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Investors starved for income may find it in their favorite place: tech stocks

For a sector that’s typically not known as a dividend play, technology stocks could be a great place to find yield in this world of tumbling rates. In the past decade, the tech sector has increased its dividend payouts by about 17% to $88 billion, according to Credit Suisse. “With a scarcity of yield today, investors may be well-served to look to the tech sector for both dividend yield and dividend growth,” Credit Suisse analyst John Talbott said in a note to clients. “There are now a group of t


For a sector that’s typically not known as a dividend play, technology stocks could be a great place to find yield in this world of tumbling rates. In the past decade, the tech sector has increased its dividend payouts by about 17% to $88 billion, according to Credit Suisse. “With a scarcity of yield today, investors may be well-served to look to the tech sector for both dividend yield and dividend growth,” Credit Suisse analyst John Talbott said in a note to clients. “There are now a group of t
Investors starved for income may find it in their favorite place: tech stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-06  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, sector, tech, favorite, starved, dividend, stocks, growth, place, credit, world, companies, yield, investors, suisse, income


Investors starved for income may find it in their favorite place: tech stocks

For a sector that’s typically not known as a dividend play, technology stocks could be a great place to find yield in this world of tumbling rates.

In the past decade, the tech sector has increased its dividend payouts by about 17% to $88 billion, according to Credit Suisse. Apple and Microsoft, two tech giants who have led the payout trend in the sector, returned a combined $27 billion to its shareholders in 2018 alone.

“With a scarcity of yield today, investors may be well-served to look to the tech sector for both dividend yield and dividend growth,” Credit Suisse analyst John Talbott said in a note to clients. “Many firms in the space offer decent dividend yields and the ability to grow dividends further given their high sustainable growth rates.”

Historically, technology companies didn’t pay dividends because they believed it sent a signal that the companies didn’t have any exciting new initiatives to reinvest their cash flow in to spur further growth. That singular growth focus made the sector the favorite of investors. Some may look to flee the space as growth slows around the world, but that would be a mistake, some investors say.

“Over time, that has shifted,” said Paul Meeks, portfolio manager at Wireless Fund (WIREX) & Independent Solutions Wealth Management. “There are now a group of tech investors … that are not just looking for the go, go, go, growth. Now it’s not necessarily a real black eye if you pay a dividend with a portion of your cash flow.”

Slowing global growth, central bank easing and the U.S.-China trade war have caused rates to tumble in the U.S. and even go negative in major countries like Germany. The yield on the 10-year Treasury note fell to its lowest level in three years on Tuesday after a report on the U.S. manufacturing sector showed the industry contracted in August. The moves have caused investors to scan the globe in search of income plays.

The following tech companies were screened by Credit Suisse for their stable and growing dividend. A range of tech hardware, software and semiconductor companies make up the list.


Company: cnbc, Activity: cnbc, Date: 2019-09-06  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, sector, tech, favorite, starved, dividend, stocks, growth, place, credit, world, companies, yield, investors, suisse, income


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Dow jumps more than 350 points after China and US agree to trade talks next month, tech leads gains

Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. The Dow Jones Industrial Average jumped 372.68 points, or 1.4% to 26,728.15. The S&P 500 climbed 1.3% to close at 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high. “I think we’re going to have a tough time breaking through it unless there is some news other than they’re going to talk.” Bank stocks such as J.P. Morgan Chase and Citigroup each closed


Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. The Dow Jones Industrial Average jumped 372.68 points, or 1.4% to 26,728.15. The S&P 500 climbed 1.3% to close at 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high. “I think we’re going to have a tough time breaking through it unless there is some news other than they’re going to talk.” Bank stocks such as J.P. Morgan Chase and Citigroup each closed
Dow jumps more than 350 points after China and US agree to trade talks next month, tech leads gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: fred imbert
Keywords: news, cnbc, companies, trade, china, going, jumps, dow, stocks, rose, closed, climbed, talks, tech, leads, gains, semiconductor, think, points, month, careful


Dow jumps more than 350 points after China and US agree to trade talks next month, tech leads gains

Stocks surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade.

The Dow Jones Industrial Average jumped 372.68 points, or 1.4% to 26,728.15. The S&P 500 climbed 1.3% to close at 2,976, led by a 2.1% gain in the tech sector, and closed around 1.7% from its record high. The Nasdaq Composite advanced 1.75% to 8,116.83.

“You have to be careful as we come up to 3,000 on the S&P 500,” said JJ Kinahan, chief market strategist at TD Ameritrade. “I think we’re going to have a tough time breaking through it unless there is some news other than they’re going to talk.”

“At some point, the proof is going to have to be in the pudding,” he added. “I don’t know that we’re necessarily going to see that, so I think investors are going to have to be careful about getting too excited.”

The VanEck Vectors Semiconductor ETF (SMH) climbed 3% as Advanced Micro Devices rose 1.8%. On Semiconductor gained 2.6%. Bank stocks such as J.P. Morgan Chase and Citigroup each closed more than 2% higher while trade bellwethers Caterpillar and Boeing rose 3.3% and 1%, respectively.

China’s Commerce Ministry issued a statement Thursday morning saying that Liu He, Beijing’s top negotiator on trade, had spoken with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.


Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: fred imbert
Keywords: news, cnbc, companies, trade, china, going, jumps, dow, stocks, rose, closed, climbed, talks, tech, leads, gains, semiconductor, think, points, month, careful


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YouTube fine shows the US government is not serious about a Big Tech crackdown

On Wednesday, as the FTC slapped a record fine on Google-owned YouTube for allegedly violating privacy protections for children, it was more or less business as usual at the company. Shares of parent company Alphabet were up after the news that YouTube would need to pay $170 million to settle the claims. That’s because the penalty is just a fraction of the revenue Alphabet generates in a single day. If this sounds familiar, that’s because the FTC went through a similar cycle with Facebook less t


On Wednesday, as the FTC slapped a record fine on Google-owned YouTube for allegedly violating privacy protections for children, it was more or less business as usual at the company. Shares of parent company Alphabet were up after the news that YouTube would need to pay $170 million to settle the claims. That’s because the penalty is just a fraction of the revenue Alphabet generates in a single day. If this sounds familiar, that’s because the FTC went through a similar cycle with Facebook less t
YouTube fine shows the US government is not serious about a Big Tech crackdown Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: lauren feiner
Keywords: news, cnbc, companies, penalties, big, facebook, tech, revenue, fine, ftc, alphabet, serious, billion, think, youtube, cases, privacy, shows, crackdown


YouTube fine shows the US government is not serious about a Big Tech crackdown

Momentum is building in Washington to crack down on Big Tech’s most free-wheeling practices: the Department of Justice is conducting a broad review of tech companies in addition to a reported antitrust investigation of Google, and Facebook disclosed a new antitrust probe by the Federal Trade Commission in July.

But the meager penalties imposed on these companies in recent years, when compared with their size, shows the U.S. government is not yet prepared to take actions that will fundamentally alter the industry.

On Wednesday, as the FTC slapped a record fine on Google-owned YouTube for allegedly violating privacy protections for children, it was more or less business as usual at the company.

Shares of parent company Alphabet were up after the news that YouTube would need to pay $170 million to settle the claims.

That’s because the penalty is just a fraction of the revenue Alphabet generates in a single day. Based on its second quarter 2019 earnings, Alphabet averages more than $400 million in revenue daily.

If this sounds familiar, that’s because the FTC went through a similar cycle with Facebook less than two months ago. The agency imposed a $5 billion fine, its largest ever on a tech company, over alleged violations of a previous privacy agreement. That’s less than one month’s worth of revenue for Facebook based on its second quarter earnings report, which showed revenue of $16.9 billion for the three-month period. By the end of trading the day of the fine’s announcement, Facebook had gained $6 billion in value. Despite the penalties and noise from politicians about cracking down, its stock is up more than 40% so far this year.

When reached for comment, Google pointed to its earlier blog post on the settlement. The FTC declined to comment for this story.

However, in an interview on “Closing Bell,” Andrew Smith, director of the FTC’s Bureau of Consumer Protection, told CNBC’s Ylan Mui, “I don’t concede that the punishment here was inadequate. I think that it is consistent with our prior cases, with our prior COPPA [Children’s Online Privacy Protection Act] cases, it’s consistent with the penalties we’ve sought and obtained in those cases. It just happens to be so much larger because YouTube is so much larger. But I do think that this is a penalty that sends a strong message to the marketplace and I have to respectfully disagree with the detractors.”


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: lauren feiner
Keywords: news, cnbc, companies, penalties, big, facebook, tech, revenue, fine, ftc, alphabet, serious, billion, think, youtube, cases, privacy, shows, crackdown


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